Lamor's Half-year Financial Report 2026: After an expectedly challenging H1, Lamor is preparing for the second half with a strengthened financial position - cost savings programme progressing as planned
Lamor Corporation Plc | Stock Exchange Release | July 28, 2026 at 09:00:00 EEST
Lamor’s first half of 2026 was challenging, as expected. Revenue declined compared to the comparison period, and operating profit was approximately at break-even, in line with the company’s guidance. The extensive cost savings programme previously announced by Lamor has progressed according to plan. The most strategically significant milestones were the commissioning inspection of the Kilpilahti circular oil production facility during the period at the end of June and the subsequent start-up preparations that followed; and, after the review period, the Company announced new financing arrangements in July as part of a comprehensive reorganisation of its debt financing.
This release is a summary of Lamor’s half-year financial report. The complete report is attached to this release as a pdf file. It is also available on the company website at lamor.com/investors.
April–June 2026 in brief
- Revenue was EUR 20.0 million (21.1)
- EBIT was EUR 0.4 million (1.0) or 1.9% of revenue (4.5%)
- Adjusted EBIT was EUR 0.8 million (1.0) or 3.8% of revenue (4.9%)
- Net cash flow from operating activities was EUR 0.2 million (1.4)
- Earnings per share (basic) was EUR -0.03 (-0.01)
- Orders received was EUR 19.0 million (20.3)
January–June 2026 in brief
- Revenue was EUR 34.3 million (40.2)
- EBIT was EUR -0.0 million (2.6) or -0.1% of revenue (6.4%)
- Adjusted EBIT was EUR 0.5 million (2.8) or 1.4% of revenue (6.9%)
- Net cash flow from operating activities was EUR -0.5 million (-4.3)
- Net working capital was EUR 34.8 million (51.4)
- Earnings per share (basic) was EUR -0.09 (-0.01)
- Orders received was EUR 27.3 million (47.9)
The figures in brackets refer to the comparison period, which is the same period the previous year, unless otherwise stated.
Fred Larsen, CEO
The first half of 2026 was challenging for Lamor, in line with our earlier expectations that both revenue and profitability would be significantly weighted toward the second half of the year. Revenue for the first half amounted to EUR 34.3 million, compared with EUR 40.2 million in the comparison period last year. Adjusted EBIT for the reporting period was slightly better than anticipated. Following a challenging first quarter, sales developed in the right direction during the second quarter, although order intake remains clearly below the level of the comparison period. The contradictory nature of the current market environment is amplified by geopolitical uncertainty, which creates demand in the long term but makes customer decision-making more cautious and project timing difficult to predict in the short term.
During the reporting period, we focused determinedly on improving profitability and enhancing operational efficiency. At the beginning of the year, we transitioned to a new global operating model, replacing the previous regional structure. Our experiences from the first few months have been positive. The organization is more agile, decision-making has accelerated, and we are able to allocate resources more efficiently according to market needs. We have progressed as planned with our previously announced cost savings programme, which aims to achieve approximately EUR 8 million in annual savings by the end of 2026 compared with the 2024 cost level, and we will continue its implementation.
In Lamor’s traditional businesses, Environmental Protection and Soil Remediation and Restoration, the long-term market drivers and potential demand outlook remain strong. We have identified significant opportunities, particularly in equipment sales and medium-sized service contracts across all our markets. Lamor’s expertise in security of supply and comprehensive security is widely recognized internationally, and our position as a trusted partner for authorities and other critical operators was further strengthened during the reporting period through deliveries of solutions to public sector customers, among others in Finland and India. We will continue our active dialogue with authorities.
Despite geopolitical uncertainties, we remain confident that demand for Lamor’s expertise has increased. Historically, Lamor has secured significant orders following the easing of conflicts, and we see considerable potential in the Middle East as the situation stabilizes. We are also closely monitoring developments in the Arctic region, where we see opportunities to contribute to the development and outfitting of icebreakers being acquired by the United States. In Latin America, we see additional potential, particularly in long-term service contracts.
Our most strategically important project remains the Kilpilahti circular oil facility. During the reporting period, we focused on finalizing the commissioning of the first production line. At the end of June, the Finnish Safety and Chemicals Agency (Tukes) conducted the commissioning inspection of the facility, and according to its decision, production may commence once the agreed finishing measures have been completed. Following the reporting period, we have continued the start-up preparations that began at the end of June. The Kilpilahti project is the largest investment in Lamor’s history and a key component of our long-term growth strategy.
I am very pleased that the new financing arrangements announced after the reporting period strengthen our financial position, provide the funding required for our ongoing projects, and allow us to focus fully on advancing our core businesses.
Our guidance for 2026 remains unchanged. We expect revenue to be between EUR 80 million and EUR 92 million, and adjusted EBIT to be at the previous year’s level or higher. We expect adjusted EBIT to improve significantly during the second half of the year as a result of measures aimed at improving sales, margins, and operational efficiency.
During a challenging first half, we successfully implemented strategic and operational measures that provide the foundation for a stronger, more profitable, and more sustainable Lamor, while enhancing our ability to capture market demand and long-term growth opportunities.
Key figures
| EUR thousand (unless otherwise noted) | 4-6/2026 | 4-6/2025 | 1-6/2026 | 1-6/2025 | 1-12/2025 |
| Revenue | 20,016 | 21,133 | 34,299 | 40,159 | 90,243 |
| EBITDA | 1,156 | 1,618 | 1,461 | 3,920 | 9,478 |
| EBITDA margin % | 5.8% | 7.7% | 4.3% | 9.8% | 10.5% |
| Adjusted EBITDA | 1,548 | 1,696 | 1,980 | 4,107 | 9,821 |
| Adjusted EBITDA margin % | 7.7% | 8.0% | 5.8% | 10.2% | 10.9% |
| Operating profit or loss (EBIT) | 372 | 958 | -41 | 2,569 | 6,197 |
| Operating profit (EBIT) margin % | 1.9% | 4.5% | -0.1% | 6.4% | 6.9% |
| Adjusted operating Profit (EBIT) | 764 | 1,036 | 478 | 2,761 | 6,545 |
| Adjusted operating Profit (EBIT) margin % | 3.8% | 4.9% | 1.4% | 6.9% | 7.3% |
| Profit (loss) for the period | -731 | -235 | -2,269 | -80 | -3,434 |
| Earnings per share, EPS (basic), euros | -0.03 | -0.01 | -0.09 | -0.01 | -0.13 |
| Earnings per share, EPS (diluted), euros | -0.03 | -0.01 | -0.09 | -0.01 | -0.13 |
| Return on equity (ROE) % | -1.3% | -0.4% | -4.1% | -0.1% | -5.7% |
| Return on investment (ROI) % | 0.3% | 0.8% | 0.0 % | 2.1% | 5.3% |
| Equity ratio % | 34.0% | 36.2% | 34.0% | 36.2% | 35.4% |
| Net gearing % | 107.6% | 91.2% | 107.6% | 91.2% | 86.2% |
| Net working capital | 34,771 | 51,407 | 34,771 | 51,407 | 35,858 |
| Orders received* | 19,023 | 20,284 | 27,336 | 47,861 | 77,513 |
| Order backlog* | 54,439 | 86,054 | 54,439 | 86,054 | 65,012 |
| Number of employees at the period end | 554 | 534 | 554 | 534 | 552 |
| Number of employees on average | 563 | 585 | 560 | 619 | 590 |
Outlook for 2026
Long-term demand in Lamor’s addressable markets continues to be supported by the stricter environmental requirements and rising environmental risks, which continue to drive investment in environmental protection, remediation and restoration and circular solutions. Additionally, management views that Lamor’s broad offering, strong references and its extensive global network continue to support its long-term growth.
The company sees significant opportunities for equipment sales and mid-sized service contracts across all its markets. In the near term, however, economic uncertainty continues to impact customers’ decision-making, and long sales cycles for mid-size and large service projects create uncertainty in the timing of new orders.
In 2026, Lamor is focused on the launch of its first circular oil production line Kilpilahti and the commercialization of the company’s concept for chemical recycling of plastic to the emerging European and global circular oil market, where the company sees significant value‑creation potential for shareholders. Lamor is currently analyzing optimal ways to commercialize and scale up the circular oil concept with partners utilizing Lamor’s global network in 100 countries. The company is also evaluating alternatives for financing further investments in the circular oil business to expand production.
Lamor strongly supports the profitable growth of the company’s other business areas in environmental protection, as well as in soil remediation and restoration. At the same time, the company is determinedly enhancing the efficiency of these operations and aims to fully implement the planned efficiency initiatives during the year. To ensure this, Lamor transitioned to a global operating model that enables flexible scaling of operations in line with business development under all circumstances.
Guidance for 2026
- Revenue is expected to be EUR 80–92 million (2025: EUR 90.2 million)
- Adjusted operating profit is expected to be at or above the previous year’s level (2025: EUR 6.5 million)
Assumptions (updated 28th July 2026)
The company expects both revenue and profitability to be weighed toward the second half of the year. As per the adjusted operating profit, the first half was expected to be around break-even. This estimate was slightly exceeded. The company estimates that measures to improve sales, margins and efficiency will clearly support revenue and profitability during the second half. Revenue from the ongoing soil remediation project in Kuwait is expected to be at a lower level than in 2025.
The ramp-up of circular oil production is expected to commence once the finishing measures agreed in connection with the final inspection by the Finnish Safety and Chemicals Agency (Tukes) have been completed. This delay in timing does not have a significant impact on the Group’s revenue and operating profit for this year. Revenue from circular oil is expected to increase gradually toward the end of the year as product quality improves and volumes grow.
Long-term financial targets
Lamor’s Board of Directors has decided (stock exchange release 26 February 2026) to update the company’s long‑term targets and elevate profitable growth to its primary strategic priority.
Lamor’s key objective is to fully realize the previously announced approximately EUR 8 million in savings in variable and fixed costs by the end of 2026 (compared to the 2024 level). The company’s operating model will enable more flexible scaling of operations in line with business development under all circumstances. The company sees significant potential to improve efficiency, and the planned structural reforms are expected to enable this.
Long-term financial targets
The company's long-term financial targets (by the end of 2027) are:
- Profitability: Adjusted operating profit (EBIT) over 14% of revenue
- Dividend policy: Aim to distribute dividends, considering business development
- Capital structure: Suitable for the company’s strategy, targets, and project portfolio by maintaining a strong balance sheet
Events after the reporting period
The Company announced on 7 July 2026 (stock exchange release) a comprehensive programme for the restructuring of its debt financing. The transaction is driven by the continuation of the Kuwait soil remediation project in January 2026, which has delayed the release of working capital beyond the original schedule, as well as the capital requirements associated with the start-up phase of the Kilpilahti plastics recycling facility. These factors are expected to normalize during the current and next financial year as the Kuwait project approaches completion and the Kilpilahti facility progresses into the production phase.
The programme consists of the following measures:
- A written procedure to amend the terms and conditions of the Company’s EUR 25 million secured green bond (ISIN: FI4000556154). The proposed amendments include, among other things, an extension of the final maturity date to 24 August 2028, step-up increases in the redemption price, certain new undertakings relating to the share issue and Lamor Recycling Oy, a minimum liquidity covenant, and other amendments required to facilitate the bank financing.
- The refinancing of existing bank loans and guarantee arrangements of the Company and Lamor Recycling Oy totalling approximately EUR 60 million, together with the provision of approximately EUR 15 million of additional financing to fund the remaining investments in the Kilpilahti plastics recycling facility and the working capital requirements of Lamor Recycling Oy (the “Bank Financing”).
- A share issue with gross proceeds of at least EUR 5 million, which the Company is required to complete no later than 15 December 2026 as a subsequent condition of both the Bank Financing and the written procedure. The Company’s principal shareholder, Larsen Family Corporation Oy, has committed to participate in the share issue with an investment of EUR 2 million and to vote in favour of the share issue at an Extraordinary General Meeting of the Company.
On 7 July 2026 (stock exchange release), the Company announced the commencement of the written procedure to obtain bondholders’ consent to amendments to the terms and conditions of its senior secured fixed-rate green bond maturing in 2026.
On 14 July 2026 (stock exchange release), the Company announced that a sufficient number of bondholders had participated in the written procedure and voted in favour of the proposal. The amendments to the bond terms and the Bank Financing became effective on 17 July 2026.
On 17 July 2026 (stock exchange release), the Company announced that it had, as described above, refinanced its own and Lamor Recycling Oy’s existing bank loans and guarantee arrangements, secured additional financing, and extended the final maturity date of the bond. The completion of the overall refinancing arrangement remains subject to a potential General Meeting resolution authorising the above-mentioned share issue. The Company’s objective is to complete the share issue no later than 15 December 2026.
Going Concern principle
The interim report has been prepared on a going concern basis. There is a material uncertainty related to the Company’s financial position and the assessment of its ability to continue as a going concern. This uncertainty is related to the completion of the share issue, which is a condition subsequent to the financing arrangements previously announced by the Company and must be completed no later than 15 December 2026. The Board of Directors considers it realistic that the share issue will be completed to a sufficient extent within the specified timeframe and is currently evaluating the most optimal structure for the share issue from the Company’s perspective. Further details regarding the going concern assessment and management’s evaluation are presented in the interim report attached to this release.
Financial calendar for 2026
In 2026, Lamor will publish financial reports as follows:
- Business review January−September 2026 on 6 November 2026
Porvoo, 28 July 2026
Lamor Corporation Plc
Board of Directors
Further enquiries:
Lamor Corporation Plc:
Fred Larsen, CEO,
fred.larsen@lamor.com
+358 40 090 6311
Nalle Stenman, CFO,
nalle.stenman@lamor.com
+358 40 566 8918
About Us
Lamor is one of the world’s leading providers of environmental solutions. For four decades, we have worked to clean up and prevent environmental incidents on land and at sea.
Environmental protection, soil remediation and material recycling: Our innovative technologies, services and tailored solutions, ranging from oil spill response, waste management and water treatment to soil remediation and plastic recycling, benefit customers and environments all over the world.
We are capable of vast and fast operations thanks to our connected ecosystem of local partners, steered by our experts. We have nearly 600 employees in more than 20 countries. In 2025, our turnover was 90 million euros. Lamor's share is listed on the Nasdaq Helsinki (ticker: LAMOR). Further information: www.lamor.com